Here's Why Avnet (AVT) is a Strong Value Stock
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Avnet (AVT)
Based in Phoenix, AZ, Avnet Inc., (AVT) is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), and value-added resellers (VARs). Avnet maintains an extensive inventory, including electronic products from more than 300 component and system manufacturers, which it distributes to customers worldwide.
AVT sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of B. Compared to the Electronics - Parts Distribution industry's P/E of 8.6X, shares of Avnet are trading at a forward P/E of 6.1X. AVT also has a PEG Ratio of 0.4, a Price/Cash Flow ratio of 5.2X, and a Price/Sales ratio of 0.2X.
Many value investors pay close attention to a company's earnings as well. For AVT, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.43 to $7.63 per share for 2023. Per share AVT boasts an average earnings surprise of 8%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding AVT to their portfolios.
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Avnet, Inc. (AVT) : Free Stock Analysis Report
